City [of London] firms have warned law graduates who declare bankruptcy to evade repaying student debt that they will seriously damage their chances of winning a training contract [e.g., an associate position] a stance that looks set to be backed by the Law Society.Reacting to concerns that a growing number of law graduates will seek to use regulations introduced last year that add student loans to the bankruptcy register, graduate recruitment partners at leading City firms have told Legal Week they will reject such applicants.
"I would take a very dim view of any student attempting to shirk his creditors by declaring bankruptcy," said one senior partner at a magic circle firm a view backed up by the majority of top law firms.
In addition, Chancery Lane officials have confirmed that the Law Society is considering making a statement on the issue to head off droves of law graduates declaring bankruptcy.
Details here from Britain's Legal Week.
Comments (< $MTEntryCommentCount$>)
HI
I AM A FULL TIME MATURE STUDENT WITH OTHER DEBTS OF £30,000 AND HAVE TAKEN OUT A STUDENT LOAN FOR LIVING EXPENSES. MY LOCAL IS ADVISING ME TO GO BANKRUPT AND IF I RECEIVE ANY MORE LOANS FROM THE STUDENT LOANS COMPANY THEN I WILL BE COMMITING AN OFFENCE WHICH I ACKNOWLEDGE BUT WHY CANNOT STUDENTS BE EXEMPT FROM BANKRUPTCY IF THEY HAVE TO PROVE THAT THE LOANS ARE FOR LIVING EXPENSES, TUITION FEES, TOP UP FEES AND BOOKS THEN WHAT IS THE PROBLEM.
THIS REALLY IS AN ISSUE THAT IS GOING TO AFFECT NOT JUST ME BUT MANY MORE STUDENTS AS THE WHOLE POINT OFTAKING A DEGREE IS FOR LONG TERM BENEFIT AND I CAN SEE THE POINT OF ADVISING ANY STUDENT NOT TO GO BANKRUPT BUT IN MY CASE I MAY HAVE NO CHOICE. AN IVA IS FOR PEOPLE WHO WORK FULL TIME DESPITE A CHANGE IN LEGISLATION.
WHAT DO OTHERS THINK I WONDER?
Posted by Anonymous | < $MTCommentDate$>
Posted on April 7, 2004 11:32